Secured Favorable ERC Settlement for Pennsylvania Small Business

Many small and medium-sized businesses have waited years for the IRS to pay the Covid-era Employee Retention Credit payments they are owed. Indeed, many are still waiting. SouthBank Legal represented a small business in Pennsylvania that, after waiting many months for its Employee Retention Credit payment from the IRS, decided to exercise its right to pursue the refund in litigation in federal court. SouthBank Legal was ready with documents to turn over to the Department of Justice showing its client’s entitlement to the credit. And, early in the case, SouthBank Legal set out a clear legal argument for its client’s entitlement to the portion of the credit that relied on a partial suspension of its operations due to a governmental order. Drawing on DOJ Tax Division experience, SouthBank Legal negotiated a settlement with the DOJ attorney assigned to the case and helped to shepherd that agreement through the various layers of required DOJ approval. The settlement was approved, and the government cut a check to SouthBank Legal’s client. As Law360 reported, SouthBank Legal’s client was “pleased with a very favorable settlement.”